hfs webinar slides: what happened to bpo...and what is truly coming next?
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Architecting the As-a-Service Economy
What Happened to BPO
Phil FershtCEO & Industry Analyst, HfS Research
phil.fersht@hfsresearch.com
...and What Is Truly Coming Next?
An HfS Webinar Production, 4th February, 2016
© 2016 HfS Research Ltd. Proprietary Page 2
Overview• 20 years’ business experience in the global IT and business process
outsourcing and shared services industry• Coined the Phrase “As-a-Service Economy” in 2014• Industry analyst, author, speaker, strategist and blogger• Advised on 100’s of global IT services, BPO and shared services
engagements• Facilitates the largest global network of enterprise services ad
operations professionals
Career Experience• Practice Lead, IT Services & BPO Research, Gartner, Inc• Global BPO Marketplace Leader, Deloitte Consulting• Consulting Practice Lead, IDC Asia/Pacific• IT Markets Practice Lead, IDC Europe
Education• BS with Honors in European Business & Technology, Coventry
University, United Kingdom• Diplôme Universitaire de Technologie in Business & Technology
from the University of Grenoble, France
phil.fersht@hfsresearch.com
Phil Fersht, CEO and Industry Analyst - HfS Research
© 2016 HfS Research Ltd. Proprietary Page 3
Overview• Abidali Z. Neemuchwala is the Chief Executive Officer & Member of the Board of Wipro
Limited. Abid combines deep operational knowledge with broad strategic insight and hasa track record of building and scaling businesses. Abid is passionate about driving changeand believes simplification of processes, belief in people & customer centricity is the keyto success.
• Previously as COO, he spearheaded several initiatives across Global InfrastructureServices, Business Application Services, Business Process Services, and Analytics to createa more nimble and agile organization. These measures helped accelerate Wipro’s abilityto respond to customers and ensured deeper employee engagement.
• Abid drives strategic and long lasting partnerships with clients. Abid believes that intoday’s digital world, successful organizations are the ones, which have the ability toconvert consumers’ aspirations into instant gratification. Reflecting the same hedelivered his popular keynote at the Oracle Open World 2015 articulating the new worldorder, in which customers buy digital experience asaservice.
Career Experience• Abid’s career spans a 23 year tenure in TCS, where he handled multiple roles in business,
technology, sales, operations and consulting. In his last role, he headed the Business Process Services business. He was awarded the BPO CEO of the year 2010 and in the year 2012 the Shared Services Organization of IPQC recognized him for his personal contribution to the industry.
Education• Abid has a master’s in Industrial Management from IIT Mumbai and a Bachelors in
Electronics and Communication from NIT, Raipur. He is also a Certified Software Quality Analyst and a Certified Six Sigma Green Belt. Abid is passionate about service and diversity and volunteers in the community and at Wipro Cares. He also enjoys travelling, Indian music, reading fiction, and playing golf. He is married, has three children, and lives in Dallas, Texas.
abidali.neemuchwala@wipro.com
Abidali Z. Neemuchwala, CEO & Member of the Board -
Wipro Limited
© 2016 HfS Research Ltd. Proprietary Page 4
Overview• Robin Rasmussen is a Principal in the KPMG LLP Shared Services and Outsourcing
Advisory practice. She leads the HR Shared Services and Outsourcing service network.She is an established industry leader with extensive experience in the human capitalmanagement, shared services and outsourcing industry. She has over twenty five years'experience in leadership positions in HR/RPO service providers, HR consulting andstrategic HR roles.
• While at KPMG, Robin led one of the largest global HR/Payroll shared servicestransformation done in recent years The work involved partnering with the client todevelop the overall strategy and implementation plan for the new service delivery model,including approach, scope, and project governance model, as well as leading the twelvefunctional workstreams throughout the entire project lifecycle; ultimately standing upeight new service delivery operation centers across four global markets (NA, EMEA,LATAM, ASPAC).
Career Experience• Prior to KPMG, Robin was the executive responsible for the strategic design,
development and execution of Pacific Gas & Electric’s comprehensive approach to talentmanagement with operational responsibility for workforce planning and analytics;employee engagement; talent acquisition and executive recruitment; relocation; diversitytalent programs; organizational design and change management; succession planning;leadership and career development. Prior to PG&E, Robin was a key member ofEquaTerra Inc., a global shared service and outsourcing advisory firm.
rlrasmussen@kpmg.com
Robin Rasmussen, Principal - KPMG LLP Shared Services
and Outsourcing Advisory practice
© 2016 HfS Research Ltd. Proprietary Page 5
Overview
• Chris Caldwell is a performance-driven and insightful leader who, as President ofConcentrix, brought the company to global prominence. In addition to his wide-ranging professional experience, Mr. Caldwell is dedicated to innovation, doingthings differently, and creating the best experiences for Concentrix clients – andtheir customers.
• Mr. Caldwell joined SYNNEX when it purchased EMJ Data Systems, where he hadbeen the Executive Vice President. He subsequently held a number of roles atSYNNEX, including Vice President Financial Operations for Canada, and VicePresident of Corporate Development, where he was responsible for handling allM&A activity and integration globally, before becoming the Senior Vice Presidentof Global Business Services. Commanding an unrivalled knowledge of diversegeographies, Mr. Caldwell led the SYNNEX acquisition of Concentrix, andspearheaded company growth from a staff of about 25 to now more than 45,000staff across the world.
• Constantly traveling to all Concentrix locations and meeting clients and staff, Mr.Caldwell ensures his passion for the company permeates the organization byinspiring each person to strive to add value in every customer interaction. Hebelieves in recognizing and rewarding staff for creativity and inspiration, andboosting business throughout the organization.
• Chris has been recognized by peers, clients, and industry, having won multipleawards for innovation, entrepreneurship, and leadership, including The YoungEntrepreneur Award from Business Development Bank of Canada at age 20, andthe Top 40 Under 40 CEOs for Canada. In addition to the many accolades, Mr.Caldwell has served on numerous boards in a variety of global business servicesorganizations such as: HiChina Web Services; Digital Internet Group; Microland;and SB Pacific.
chris.caldwell@concentrix.com
Chris Caldwell, President - Concentrix
© 2016 HfS Research Ltd. Proprietary Page 6
Overview
• Marsha leads the SAP controls, security and GRC practice in theUS. In that role, she is responsible for go-to-market, peopledevelopment, innovation and quality activities.
• Marsha's consulting and audit experience is directed at helpingcompanies improve their governance, risk and compliance (GRC)programs and deliver value through technology enablement.Marsha also has extensive experience managing business,technology and project risk during global business transformationprojects enabled by SAP. Marsha focuses on retail and consumerproducts as well as media and entertainment industries.
marsha.reppy@ey.com
Marsha Reppy, Principal - Ernst & Young
© 2016 HfS Research Ltd. Proprietary Page 7
Overview
• Based in New York, Tiger is credited as one of the industry leaders whopioneered a new global business model and transformed a division of GE(formerly GE Capital International Services) into Genpact, a leading businessprocess management and technology services company with $2.28 billion inannual revenues in 2014.
• In his role, Tiger spends a lot of time with the C-Suite of large globalcorporations, helping them drive change globally and get more competitivein their industry.
• Tiger frequently writes and speaks about global talent issues, continuousskill development, and the importance of building a strong corporateculture. He is also passionate about diversity and serves as one of thefounders of the US chapter of the 30% Club, an organization of CXOs focusedon achieving better gender balance at US companies. Tiger is also a memberof the WSJ CEO Council.
vn.tyagarajan@genpact.com
NV “Tiger” Tyagarajan, President and CEO - Genpact
© 2016 HfS Research Ltd. Proprietary Page 8
Overview• Eleanor is a recognized IT and sourcing expert who has extensive experience in onshore and
offshore outsourcing across IT and various other business processes. She is one of the co-founders of Source, now an Alsbridge company, responsible for implementing sourcing deals fora wide range of global clients.
• Eleanor has led successful programs involving all stages of the sourcing lifecycle from strategydevelopment through transition. She is acknowledged as a skilled influencer, consistently buildinghigh performing and loyal teams.
• Prior to setting up Source, Eleanor was a Director of Consultancy at Alsbridge where she wasinstrumental in the growth of Alsbridge’s award winning IT Outsourcing practice. Prior to that shewas managing director of Quantum Plus, where she led the team to win the NOA outsourcingadvisor of the year award.
Key Expertise• Transition Management & Program Delivery• Sourcing Strategy and Business Case Development• Contract Negotiation and Restructuring• Commercial Management• Change management
Credentials• Advised a wide range of clients including Britannia Airways, Virgin Trains, Sony, Surrey County
Council, Moller Maersk, John Lewis, Waitrose, STA Travel, PRS for Music, arvato, Value Retail, TheLegal Services Commission, Northern Rock, The Law Society, Groupe Aeroplan, Halfords, Luminar,Kings College Hospital
• Pioneer of “Positive Sourcing Relationships”, developing and implementing positive outcomes forevery individual involved in an outsourcing transaction
• Transition expert with significant experience in establishing client, supplier working methods• Commercially smart, strong negotiator with a reputation for getting the right outcomes while
protecting relationships• Delivery specialist, ensuring sourcing programs are successfully delivered to time and budget• Business transformation expert, specializing in implementing alternative service delivery models• Training specialist, preparing customers and suppliers for new service delivery models
eleanor.winn@alsbridge.com
Eleanor Winn, Managing Director - Alsbridge
© 2016 HfS Research Ltd. Proprietary Page 9
Overview• Jesus Mantas is the General Manager of Consulting and Global Process Services in IBM.
He is responsible for Digital, Cognitive, Analytics, Cloud Business Solutions, EnterpriseApplications, Alliances and Global Process Services in IBM Global Business Services.
• Before this appointment, he was the General Manager of IBM Global Process Services,the Business Process Outsourcing unit of IBM. In that role he introduced the “consult-to-operate” strategy, and transformed IBM BPO solutions to deliver better client experienceand faster returns with IBM Design Thinking and Cognitive Solutions.
Key Expertise• He was the Managing Partner and General Manager for IBM Global Business Services in
Latin America between 2010 and 2014. He led market-shaping client relationships thatrepositioned IBM as a leading transformation partner, specially Enterprise Applicationsand Analytics markets. Prior to this role, he was Managing Partner for the North AmericaGeneral Business segment in IBM Global Business Services.
• He is known for his vision, anticipating trends and leading by example. He joined IBMfrom PricewaterhouseCoopers Consulting, where he helped shape the market ofenterprise mobility. His current priorities are developing world-class professional servicesleaders, reinvent business models with cognitive technology, and help clients reinventthemselves as industries are disrupted with digital business models.
Credentials• Jesus Mantas was a lecturer at the University of California Irvine, Paul Merage School of
Business for 3 years. He completed a Master in Telecommunications Engineering, thesisin neural networks applied to speech recognition, and a degree in BusinessAdministration from the Universidad Complutense de Madrid, Spain; he also served oneyear as an officer in the Air Force of Spain.
jesus.mantas@us.ibm.com
Jesus Mantas, GM, Consulting and Global Process
Services - IBM Global Business Services
© 2016 HfS Research Ltd. Proprietary Page 10
Unbridled Opinion… Simply Calling It How It Is
www.horsesforsources.com
© 2016 HfS Research Ltd. Proprietary Page 11
…With a More Serious Side Too! www.hfsresearch.com
© 2016 HfS Research Ltd. Proprietary Page 12
© 2016 HfS Research Ltd. Proprietary Page 13
© 2016 HfS Research Ltd. Proprietary Page 14
Reetika Joshi
Research
Director
Analytics,
Insurance
and Utilities
Charles
Sutherland
Chief Research
Officer
Barbra
McGann
EVP
Business
Ops &
Healthcare
Research
Jamie
Snowdon
EVP
Market
Analysis and
Forecasting
Meet the HfS Research Practice Leaders
Thomas Reuner
MD, ITO
SaaS,
Automation,
Cognitive
Computing,
Cloud
Hema Santosh
Principal
Analyst
Finance
Strategies,
BPO, IT
Services
Khalda de
Souza
Principal
Analyst
SaaS
Services
Fred
McClimans
MD
Digital Trust
& Security
John Haworth
Chairman
HfS Sourcing
Executive
Council
Pareekh Jain
Research
Director
Engineering
Services,
Telecom
Operations
Phil Fersht
CEO &
Industry
Analyst
Melissa
O’Brien
Research
Director
Contact Ctr.
and Omni-
Channel BPO
Derk Erbé
MD
Digital
Business,
Energy,
Utilities &
Resources
Mike Cook
Research
Director
HR-as-a-
Service, HR
Outsourcing
© 2016 HfS Research Ltd. Proprietary Page 15
Real-time data from 1000’s of industry
stakeholders
Driving Real Unvarnished
Community Dialog
Blueprint Market Analyses and Best
Practices
Industry-Leading Buyer-led Summits
On-tap Strategy, Analytics and Advice
HfS: Research As-a-Service!
© 2016 HfS Research Ltd. Proprietary Page 16
Q1
Analytics in Financial Services
Design Thinking
F&A-as-a-Service
Pharma BPO
SAP SuccessFactorsServices
Supply Chain Management Services
Q2
Banking Operations
Consumer Health Integration
Contact Center Operations
Energy Operations
HR As a Service
Mortgage-as-a-Service
Security-as-a-Cloud
ServiceNow Services
Telecom Operations
Q3
App Testing-as-a-Service
Digital Trust-as-a-Service
Intelligent Automation Services
PLM Services
RPO as-a-Service
Workday Services
Q4
As-a-Service Masters
Healthcare Payer Operations
Health Providers
IoT Transformation Services
Manufacturing-as-a-Service
Omni-Channel Marketing-as-a-Service
P&C Insurance-as-a-Service
Procurement-as-a-Service
Salesforce ServicesSubject to change
HfS Blueprint As-a-Service Publication Schedule, 2016
© 2016 HfS Research Ltd. Proprietary Page 17
• World’s largest taxi company owns no Taxis: Uber
• The most popular media owner creates no content: Facebook
• Largest accommodation provider owns to real estate: Airbnb
• Largest phone companies own no telecom infrastructure: Skype, WeChat
• World’s mot valuable retailer has no inventory: Alibaba
• Fastest growing banks have no actual money: SocietyOne
• The world’s largest movie house owns no cinemas: NetFlix
• Largest software vendors don’t write the apps: Google
• The most popular emerging research firm doesn’t sell research reports: HfS
Data is eating the world!
© 2016 HfS Research Ltd. Proprietary Page 18
Fixed Assets Leveraged Assets
2Design
Thinking
3Brokers of Capability
1Write Off
Legacy
4Collaborative Engagement
7Holistic Security
5Intelligent
Automation6
Accessible & Actionable
Data
8Plug & Play
Digital Services
SOLUTIONIdeals
LEGACY
ECONOMY
AS-A-SERVICE
ECONOMYCHANGE MGMTIdeals
Moving into the As-a-Service Economy means changing the nature and focus of engagement between Enterprise Buyers, Service Providers, and Advisors
“As-a-Service” unleashes people talent to drive new value through smarter technology and automation
Journey to the As-a-Service Economy
© 2016 HfS Research Ltd. Proprietary Page 19
16%
8%
37%
21%
47%
62% 10%
SVP & Up
VP & Below
Absolutely critical Critical Significant Insignificant
How significant do you see the “As-a-Service Economy” for your organization?
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Enterprise Service Buyers = 178
Leadership has the desire to drive the change, not the
operational layer
© 2016 HfS Research Ltd. Proprietary Page 20
Fixed Assets Leveraged Assets
2Design
Thinking
3Brokers of Capability
1Write Off
Legacy
4Collaborative Engagement
7Holistic Security
5Intelligent
Automation6
Accessible & Actionable
Data
8Plug & Play
Digital Services
SOLUTIONIdeals
LEGACY
ECONOMY
AS-A-SERVICE
ECONOMYCHANGE MGMTIdeals
Moving into the As-a-Service Economy means changing the nature and focus of engagement between Enterprise Buyers, Service Providers, and Advisors
“As-a-Service” unleashes people talent to drive new value through smarter technology and automation
Journey to the As-a-Service Economy
© 2016 HfS Research Ltd. Proprietary Page 21
The C-Suite wants new providers, new leadership and their
operations redesigned…
77%
69%
62%
54%
54%
54%
46%
46%
27%
36%
24%
43%
23%
25%
28%
48%
Replace your existing (legacy) service provider(s) with “As-a-Service” driven providers
Identify / hire a transformational leader / change agent
Invest in specialized external services to redesignoperations
Accomplish creative problem solving / "Design Thinking"
Invest in external IT services to help us migrate away fromlegacy systems
Invest in specialized change management support toreorient operations staff
Hire in new operations talent to redesign processes
Invest in effective analytics tools & skills
% Significant Impact
C-Level
MiddleManagement
How much impact would taking the following actions help you reach your desired “As-a-Service” end-state, if you were to make them today?
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Enterprise Buyers > $1 Billion Revenues = 178
© 2016 HfS Research Ltd. Proprietary Page 22
C-Suite has plans to dump legacy providers, write-off
legacy IT and use outsourcing partners more aggressively
50%
43%
36%
29%
29%
29%
14%
14%
14%
19%
22%
23%
24%
20%
19%
26%
13%
35%
Replace your existing (legacy) service provider(s) with “As-a-Service” driven providers
Write-off legacy IT investments and move straight into clouddelivery of processes supported by As-a-Service partner(s)
Invest in external IT services to help us migrate away fromlegacy systems
Identify / hire a transformational leader / change agent
Accomplish creative problem solving / "Design Thinking"
Invest in specialized external services to redesign operations
Invest in internal IT talent to help us migrate away fromlegacy systems
Hire in new operations talent to redesign processes
Invest in effective analytics tools & skills
% Definitive Plans
C-Level
MiddleManagement
Do you have plans in place to execute on the following actions, over the next 24 months, to improve your “As-a-Service” environment?
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Enterprise Buyers > $1 Billion Revenues = 178
© 2016 HfS Research Ltd. Proprietary Page 23
C-Suite views providers’ willingness to change the legacy
model as number one obstacle to progress
58%
55%
46%
42%
27%
27%
27%
9%
21%
32%
21%
34%
34%
27%
21%
25%
Lack of willingness from our service provider(s) tocannibalize their existing revenue models
Few available “plug and play” services
Lack of support from our service provider(s) toshare risks/gains with us
General inertia in our organization to change fromthe status quo
Missing definitions around business outcomes
Outdated procurement & contracting capabilities
Lack of trust in service providers
We don't have the talent inhouse to evolve thecurrent model
% Highly Significant
C-Level
Middle Management
How significant are the following obstacles holding back your enterprise’s move to the “As-a-Service Economy”?
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Enterprise Buyers > $1 Billion Revenues = 178
© 2016 HfS Research Ltd. Proprietary Page 24
Most Buyers view Service Providers as Execution
Shops…
28%
52%
17%
3%
A vital partner that plugs critical gaps in terms ofskills, global scale, domain knowledge and
technology
A great vehicle to drive down costs and improveefficiencies
An access to cheap labor, but little value beyondthat
General disappointment
Buyers: What do you really think about service providers?
Source: The HfS Working Summit for Service Buyers, December 2015
(Sample 53 enterprise outsourcing leads)
© 2016 HfS Research Ltd. Proprietary Page 25
The Master/Slave Model Dominates BPO
21%
69%
10%
Collaborative – we jointly strategize and execute
Directive – we tell them what to do Dysfunctional – there’s a general lack of communication and accomplishment
Buyers, please describe your relationship with your primary service provider…
Source: The HfS Working Summit for Service Buyers, December 2015
(Sample 53 enterprise outsourcing leads)
© 2016 HfS Research Ltd. Proprietary Page 26
While many provider leaders believe their customers
have no desire to change
13%
38%
50%
0%
Fast-moving dynamicinnovators willing to
embrace change and investin disruptive solutions
They want to shift to an As-a-Service model, but
struggle to deal with thechange
They pretend to want to change but really don’t
They like being in a legacyworld and use every excuse
under the sun never tochange things
Source: The HfS Working Summit for Service Buyers,
December 2015 (Sample: Executive service provider leaders)
© 2016 HfS Research Ltd. Proprietary Page 27
How buyers would improve the quality and outcomes
from their current BPO service relationships…
28%
13%
9%
45%
4%
2%
Letting go and giving up more higher-value work to ourservice provider(s)
Threatening to entertain competitive bid(s) to force yourcurrent provider(s) to up their game
Bring back more work in-house and improve it ourselves
Roll out an automation strategy in tandem with ourprovider
Bring in a specialist advisor to recalibrate ourrelationship(s) and get us on the right course for As-a-
Service
Not a lot – we paid for “cheap and cheerful” and that’s what we’re stuck with
Source: The HfS Working Summit for Service Buyers, December 2015
(Sample 53 enterprise outsourcing leads)
© 2016 HfS Research Ltd. Proprietary Page 28
The HfS Intelligent Automation Continuum
Data Center
Automation:
Runbook
Scripting
Scheduling
Job control
Workload
automation
Process
orchestration
SOA
Virtualization
Cloud services
RPAAutonomic
Platforms
True
Artificial
Intelligence
BPM
Business process automation
Workflow
trigger based
Characteristic of process
rules based
dynamic language
rules based
standardized language
Structured
Characteristic of data/information
Unstructured without patternsUnstructured patterned
Cognitive
Computing
© 2016 HfS Research Ltd. Proprietary Page 29
-13% -5% -5% -4% -3% -3% -5%
31% 29% 28% 26% 21% 18% 17%
-20%
-10%
0%
10%
20%
30%
40%
ApplicationDevelopment &
Maintenance
Finance andAccounting
ITInfrastructure
Industry-specificOperations
Procurement HumanResources
CustomerService
-9% -7% -6%-2% -3% -3% -4%
18%26%
19% 17% 20% 20% 16%
-20%
-10%
0%
10%
20%
30%
ApplicationDevelopment &
Maintenance
Finance andAccounting
ITInfrastructure
Industry-specificOperations
Procurement HumanResources
CustomerService
Decrease
Increase
Man plus machine: Offshoring continues to accelerate
across business functions in 2015
How will your Offshore Investments Change in 2015? (Outsourcing)
How will your Offshore Investments Change in 2015? (Shared Services)
Source: 2014 State of Industry Study, 2014. HfS Research in Conjunction with KPMG (Sample 312 Enterprises)
© 2016 HfS Research Ltd. Proprietary Page 30
38%
36%
35%
27%
40%
47%
42%
42%
48%
45%
52%
38%
37%
46%
46%
9%
12%
13%
33%
21%
14%
21%
23%
18%
22%
21%
35%
42%
37%
39%
53%
52%
51%
40%
39%
39%
37%
35%
34%
33%
27%
27%
21%
17%
15%
Sales
Analytics
Marketing
Payroll
Legal
Procurement
Supply Chain and Logistics
Industry-specific Processes
Human Resources
Customer Service
Finance and Accounting
Facilities Management
Print & Mail Operations
IT application maintenance & development
IT and Network infrastructure support
Shared Services Outsourced In-house (de centralized)
Outsourcing still augments in-house delivery, as opposed to
replacing it…
Source: HfS Research in Conjunction with KPMG
Note: n=343
© 2016 HfS Research Ltd. Proprietary Page 31
Work in As-a-Service Progress: Digital and Data the real
drivers, but current model is still delivering value
66%
53%
52%
39%
31%
23%
21%
17%
13%
Reducing the overall cost of process delivery
More digitally-aligned operations
Access better data to improve our business
Move to an outcomes-driven sourcing model
Reduced reliance on manual labor to deliver processes
Responding to disruptive competitors
Ability to access, in "real time", more flexible pools ofskilled labor
Pre-empting competitors in our target growth markets
No more value to be found in current sourcing model
What are the most significant drivers in your move to the “As-a-Service Economy”? (Choose top 3)
Source: "Ideals of As-a-Services" Study, HfS Research 2015
Sample: Enterprise Service Buyers = 178
© 2016 HfS Research Ltd. Proprietary Page 32
62%
49%
29%
24%
18%
13%
11%
33%
45%
40%
43%
30%
23%
25%
3%
4%
19%
24%
37%
29%
26%
2%
2%
12%
9%
16%
35%
38%
Drive down operating costs
Cost effective, flexible services
Better address risk and regulation
Real-time data-driven insights
Improve the quality of operations talent
Restrict the recruitment of labor where possible
Invest in process automation and robotics to reducereliance on labor
Mission Critical Increasingly Important Emerging Not a Directive
C-Suite Internal Priorities: Less Cost, Better Data, Less
People
How critical are the following C-Suite priorities/directives with your operating model?
Source: HfS Research and KPMG LLP, 2015
Sample: 168 Enterprise Buyer Executives from “Achieving Value Beyond Cost” Study
© 2016 HfS Research Ltd. Proprietary Page 33
Two-Thirds of Enterprises Lack “As-a-Service” Skills…
How satisfied are you with your internal talent’s ability to achieve the following business outcomes with your current outsourcing engagement(s)?
4%
5%
8%
5%
6%
6%
11%
6%
12%
17%
20%
27%
28%
29%
38%
41%
40%
41%
47%
43%
51%
50%
40%
48%
36%
35%
30%
29%
27%
29%
22%
20%
22%
24%
17%
23%
18%
19%
20%
18%
16%
20%
11%
7%
5%
2%
4%
4%
5%
5%
3%
2%
3%
1%
1%
0% 25% 50% 75% 100%
Accomplish new innovations/creative ideas with service delivery
Improved analytical capabilities
Better automated processes
Better transformed/reconfigured processes
Aligning stakeholders across the org. to achieve better results
Adding strategic value to the business beyond standard operations
Work collaboratively with the provider(s) to deliver higher value
Better standardized processes
Achieving significantly lower operating costs
Keeping the standard operations ticking over efficiently
Meet compliance/regulatory requirements
Very satisfied Satisfied Neither satisfied or unsatisfied Unsatisfied Very unsatisfied
Valu
e Beyo
nd
Co
st
Source: HfS Research State of Industry Study 2014, conducted in conjunction with KPMG
(Sample 312 Enterprises)
© 2016 HfS Research Ltd. Proprietary Page 34
Big Changes Expected Between Now and In Two Years
Time
78%
72%
69%
67%
64%
44%
34%
86%
86%
85%
89%
84%
67%
58%
Trust and security
Analytics and big data tools and applications
Interactive / collaborative tools, applicationsand social media
Cloud-based / SaaS platforms upon which tobuild shareable digital capabilities
Mobility tools and applications
Cognitive computing platforms and machinelearning
Robotic process automation (RPA) tools andapplications
Now
In 2 Years
Q14. In your experience, how much impact are the following digital components having on your F&A processes? (Now and in 2 years – Just Major and Some Impact)
Source: “Re-architecting Finance" Study, HfS Research 2016
Sample: Enterprise Buyers = 160
© 2016 HfS Research Ltd. Proprietary Page 35
© 2016 HfS Research Ltd. Proprietary Page 36
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%Infosys
Margin Revenue growth
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%Cognizant
Margin Revenue growth
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Wipro
Margin Revenue growth
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%TCS
Margin Revenue growth
© 2016 HfS Research Ltd. Proprietary Page 37
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
HCL
Margin Revenue growth
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
HP ES
Margin Revenue growth
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Accenture
Margin Revenue growth
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
CSC
Margin Revenue Growth
© 2016 HfS Research Ltd. Proprietary Page 38
So how this will play out?
© 2016 HfS Research Ltd. Proprietary Page 39
Questions?
Architecting the As-a-Service Economy
What Happened to BPO
Phil FershtCEO & Industry Analyst, HfS Research
phil.fersht@hfsresearch.com
...and What Is Truly Coming Next?
An HfS Webinar Production, 4th February, 2016
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